SolAmerica Energy Closes $79 million Sale Leaseback Tax Equity Commitment and $50 million Construction Financing for Illinois Portfolio

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Dec 03, 2024, 08:00 ET

ATLANTA, Dec. 3, 2024 /PRNewswire/ -- SolAmerica Energy (SolAmerica) has closed on financing for an 18 MW solar portfolio comprised of seven projects in Illinois that SolAmerica will manage and operate. The financing includes a $50 million construction loan with KeyBank and a $79 million sale leaseback tax equity commitment from Key Equipment Finance. The projects are expected to reach commercial operation in 2025. SolAmerica is owned by funds managed by AB CarVal.

SolAmerica Energy is a developer, owner, and operator of community-scale solar projects, headquartered in Atlanta, Georgia and owned by funds managed by AB CarVal.

KeyBanc Capital Markets, a leader in renewable energy financing and advisory services, acted as administrative agent, and collateral agent on this transaction. Key Equipment Finance, a leading equipment financier, acted as the sole tax equity investor.

"SolAmerica is proud to partner with KeyBank for tax equity and construction financing for our latest portfolio of Illinois solar projects," said Tully Blalock, CEO of SolAmerica Energy. "This transaction continues our team's history of developing successful projects by leveraging our strong relationships with industry-leading partners like Key, who are able to provide diverse capital solutions. We look forward to working more together in the future."

"As a part of our commitment to renewable energy, we are pleased to underwrite and to provide capital for SolAmerica Energy's portfolio of solar projects," said Mark Dondero, Director, KeyBanc Capital Markets Utility, Power, and Renewable Energy Group. "We look forward to continuing the relationship with SolAmerica to deploy renewable energy solutions."

"We are pleased to invest in innovative solar projects," said Robert Davies, Head of Clean Energy at Key Equipment Finance. "With KeyBank's financing, SolAmerica Energy will help achieve energy cost savings for the residents of Illinois, as well as environmental benefits for the community."

"We look forward to building these solar assets to meet the growing demand for renewables," said Alex Flamm, Managing Director with AB CarVal. "Key Bank is a great partner for SolAmerica. We appreciate their continued partnership and ability to provide a comprehensive solution."

Sheppard Mullin served as sponsor's counsel on the deal. Thompson Hine served as tax equity's and lender's counsel.

About SolAmerica Energy
SolAmerica Energy is a developer, owner, and operator of community-scale solar projects, headquartered in Atlanta, Georgia and owned by funds managed by AB CarVal. Since its founding in 2009, SolAmerica has developed and built over 300 MW of solar projects in 11 states and over 100 counties throughout the eastern United States. The company currently has an operating portfolio and development pipeline exceeding 1.5 GW in distributed generation solar projects throughout the United States.

About AB CarVal
AB CarVal is an established global alternative investment manager and part of AllianceBernstein's Private Alternatives business. Since 1987, AB CarVal's team has navigated through ever-changing credit market cycles, opportunistically investing $151 billion in 5,800 transactions across 82 countries. Today, AB CarVal has approximately $19 billion* in assets under management in corporate securities, loan portfolios, structured credit and hard assets. AB CarVal has committed over $5.5 billion in energy transition investments. Additional information about AB CarVal may be found at www.abcarval.com.

*AUM is comprised fee-earning AUM and fee-eligible AUM. Fee-earning AUM includes those assets currently qualified to generate management fees. Fee-eligible AUM includes capital that is committed to an AB CarVal Fund but is currently uncalled or recallable. The number represented here excludes assets under AB CarVal's management that are not generating management fees due to the maturity of the Fund but includes amounts that do not generate management fees solely due to AB CarVal's decision not to charge management fees.

Media Contact: Anna Lovely | [email protected]

SOURCE AB CarVal